We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
80,259 News Articles

MyNetFone acquires CallStream

Australian telecommunications provider, MyNetFone, has agreed to acquire client base and assets of inbound call specialist, CallStream, for $600,000.

The acquisition will be completed in cash payable in two instalments over the next 60 days, subject to successful customer migration.

CallStream is expected to contribute gross revenue of $1 million per annum. It is also expected to deliver earnings before interest, taxes, depreciation and amortisation (EBITDA) of approximately $600,000 following a short period of integration.

MyNetFone said that earnings in subsequent years are expected to further improve following complete network and product integration, and once new sales and marketing initiatives are deployed to leverage the additional brand and product line concepts into the telco's portfolio.

The acquisition is expected to be EPS accretive in FY2013 and will be fully funded from existing cash reserves and future free cash flow, including the cash generated by CallStream.

These services are currently hosted on CallStream infrastructure carried over third party network aggregators, and will be migrated to the Symbio network in order to achieve the operational and cost synergies stated above.

In an official statement, MyNetFone said that its Board "feels this deal represents outstanding value to shareholders and is a prudent use of the company's cash reserves."

"We remain cash flow positive, free of bank debt and well capable of paying dividends. The company expects to pay a fully franked dividend in the current half year, as per our previous track record."

MyNetFone added that will continue to evaluate potential acquisition opportunities.


IDG UK Sites

iPhone 6 vs Samsung Galaxy S5 comparison review: Apple takes on Samsung once again in smartphone...

IDG UK Sites

Just another opinion about Apple's new iPhone

IDG UK Sites

Intel Xeon E5 v3 Haswell processors review: we check out the fastest chips on the planet

IDG UK Sites

Apple Watch hands-on review | Apple Watch design, spec, features & UK pricing